A Newsletter for retired members of the Local Government Pension Scheme participating in the Staffordshire Pension Fund incontact Spring 2012 In this issue Pensions Increase for 2012 Pension Payment dates for 2012/2013 State Pension Age explained Free bus travel and more
Welcome to the new look incontact! For 2012 we ve decided to freshen up incontact by changing its appearance. Regular articles such as those that advise you of the forthcoming pensions increase and the dates when your pension will be paid have been retained, but we are thinking of adding further articles of interest to our readers. We would like to hear from you about the type of articles you would like to see included in the new format (see page 13) and, of course, be pleased to receive any articles that you think would be beneficial for sharing with other readers of the newsletter. There is also an invitation to send us your pictures. You can contact Pension Services various ways, please see page 16 for further details. Janet Caiazzo Pensions Manager Contents 3 Pension Pay Dates 4 Pensions Increase 6 Pension Reform 7 New Committee Member 8 Investment Performance 9 Pension Payroll Details 10 State Pension Age 12 Free Bus Travel 13 Can You Help? 14 National Fraud Initiative 15 Pension Tracing Service 16 Contact Details If you would like this information in large print, Braille, audio tape/disc, British Sign Language or any other language, please ring 01785 278222 2
Pension payment dates for 2012/2013 Monday 30th April 2012 Thursday 31st May 2012 Friday 29th June 2012 Tuesday 31st July 2012 Friday 31st August 2012 Friday 28th September 2012 Wednesday 31st October 2012 Friday 30th November 2012 Friday 21st December 2012 Thursday 31st January 2013 Thursday 28th February 2013 Thursday 28th March 2013 Please remember that a pay advice slip will only be issued to you if your net pension has changed by more than 1 since the previous month. Because we only issue a payslip occasionally, it is easy to forget to inform us if you change your address. Each year when the incontact newsletter and the April payslips are sent out, a substantial number are returned to us because the address we have is no longer correct. In these cases, to avoid any potential overpayment, we stop payment of the pension until the pensioner concerned has contacted us with the correct address. Don t let this happen to you! Please remember to let us know if you are changing your address. 3
Pensions Increase 2012 If you retired after the 24th April 2011, you will not receive the full increase for 2012. The table below tells you what the increase is. You ll start to get the full increases from next year. Pension beginning Increase Before 25th April 2011 5.20% 25th April 2011 to 24th May 2011 4.77% 25th May 2011 to 24th June 2011 4.33% 25th June 2011 to 24th July 2011 3.90% 25th July 2011 to 24th August 2011 3.47% 25th August 2011 to 24th September 2011 3.03% 25th September 2011 to 24th October 2011 2.60% 25th October 2011 to 24th November 2011 2.17% 25th November 2011 to 24th December 2011 1.73% 25th December 2011 to 24th January 2012 1.30% 25th January 2012 to 24th February 2012 0.87% 25th February 2012 to 24th March 2012 0.43% Who gets the increase? Pensions increase is normally paid to pensioners who are aged 55 or over, or have retired on ill health grounds (at any age), or receive a spouse s/child s pension. Are you under age 55? If you are, you may get the increases earlier than age 55 if you become permanently unfit to do any work. lf this doesn t apply to you, on your 55th birthday we ll bring your pension up to the amount it would be if you had received all the increases from the date you retired, but there will be no arrears due in respect of the period you were receiving pension before your 55th birthday. 4
Are you receiving a State Retirement pension? If so you may have received a notice from HM Revenue and Customs that shows a Contracted Out Deduction (COD). This would be because your pension is based wholly or partly on service after 5 April 1978 and because, from that date, the Local Government Pension Scheme (LGPS) was contracted out of the State Earnings Related Pension Scheme (an Additional Pension provided by the State on top of the basic Retirement Pension). If you were a member of the LGPS at any time after 5 April 1978 you will have been paying a reduced rate of National lnsurance contributions because you were not contributing towards this Additional Pension. Your COD represents the value of the earnings related addition you would otherwise have received and it is the minimum amount of pension payable to you from the LGPS. Your COD is already included in the total pension you receive from the Staffordshire County Pension Fund and will be shown on your payslip as GMP (Guaranteed Minimum Pension). For those of you who have a GMP amount shown on your payslip as part of your LGPS pension, the increase on that amount is paid from two sources. Your State Retirement Pension includes all of the increase due in respect of that part of the GMP attributable to service up to 5 April 1988 and any increase over 3% in respect of that part of the GMP attributable to service after 5 April 1988 The Staffordshire Pension Fund pays all of the increase due on the amount of pension that is over and above the value of your GMP, together with any increase up to 3% in respect of that part of the GMP attributable to service after 5 April 1988 If all of your service was after April 1997, you do not have a GMP and will not receive a COD notification. In summary, to check that you have received the correct amount of Pensions Increase you will need to add your State Retirement Pension to any pensions you receive from Staffordshire County Council (and include your Teachers Scheme Pension, if you are a retired teacher). The total amount of your gross pension income should have increased by at least the CPI percentage (this is probably best done in May when the first full month of increased pension is paid). 5
Pension Reform Since Lord Hutton published his report in March 2011 making recommendations to the government for the reform of public sector pensions, there has been much debate about how these changes will affect the LGPS as we know it. What we do know is there will be no effect on any of the pensions in payment and we do not anticipate any other changes that will affect pension members. Please do not worry about the intended changes the payment of your pension will continue no matter what the changes are, or when they are introduced. 6
New co-opted Pensions Committee member appointed In the last issue of incontact, we invited expressions of interest from any readers wishing to be considered for the role of the new co-opted committee member, to represent retired members. We are pleased to announce the appointment of Eric Shaw. Eric said this when accepting the role I am looking forward to representing the retired members on the Pensions Committee and do not underestimate the task of being the sole representative for the 24,000+ members who currently receive a pension. To do this I will need to set up a two way communication system so that you can give me your views and I can pass information back. As this is a new position there is no existing arrangement but it will be my first job to set it up. Just a brief bit of history about me. I trained as a Civil Engineer with Stoke on Trent City Council in the 1960 s, went to Newcastle-under-Lyme Borough Council for a few years, then back to Stoke, transferred to Staffordshire County Council in the 1974 reorganisation, held posts at two Cheshire Authorities before moving back to Newcastle in 1990 and then retiring in 1998. You can contact Eric with your views using the following e-mail address: pensions.representative@ staffordshire.gov.uk or, by writing to Pension Services at the address shown on page 16 and we will ensure that your correspondence is passed to him. 7
Investment Performance The Pension Fund had a market value at 31 December 2011 of 2.574 billion. Despite the challenging economic climate, the Fund continues to outperform its investment benchmark. The return of 7.2% in the final quarter of 2011 was above the benchmark return of 6.9%. The Fund is also marginally ahead of its rolling 1 year and 3 year investment performance benchmarks by 0.4% and 0.3% respectively. Investment performance as at 31st Dec 2011 Investment performance as at 31st Dec 2011 12% QTR ended 31/12/2011 1 year ago 3 years ago Benchmark 0 Fund -5% Shown below is a breakdown by investment type as at December 2011. 0.70% 5.60% 9.10% 13.40% 21.70% 49.50% UK Equities Global Equities Bonds Other Property Cash If you have any questions about the investment of the Fund, please contact our Treasury and Pension Fund Team on 01785 276330. Please note that the value and investment performance of the Fund does not affect your pension. 8
Staffordshire County Council Shared Service Centre administers the payroll for your Pension Payment If you wish to make enquiries about tax assessment in relation to your pension you should contact: HM Revenue & Customs Customer Operations Government Buildings Ty Glas, Llanishen Cardiff CF14 5YA Telephone: 0845 3000627 Quote 586/PENS and have your National lnsurance number available. If you need to get in touch with the Shared Service Centre regarding your pension payments, they can be contacted at: Shared Service Centre Staffordshire County Council Wedgwood Building Tipping Street Stafford ST16 2DH Telephone: 01785 276112 e-mail: pensionerspayroll@staffordshire.gov.uk Should you wish to change your bank details, you will need to write to the Shared Service Centre at the above address. Please head your letter PENSIONS PAYROLL plus your National lnsurance number and payroll reference number if you know this. 9
State Pension Age explained The State Pension Age is the earliest age you can get your State Pension. The government proposes to gradually raise the age over the next few decades. This article explains the current position and the changes proposed. Current State Pension Age For many years, State Pension Age was 65 for men and 60 for women. From April 2010, however, equalisation of State Pension Age commenced so that it is 65 for both sexes. Equalisation at age 65 will be achieved by November 2018. Women born on or after 6 April 1950, but before 6 December 1953, will find their State Pension Age falling on a date between the ages of 60 and 65. The table to the right shows how progress towards equalisation at age 65 will broadly be achieved, illustrated by date of birth banding. Female State Pension Age Changes Date of Birth Before 6 April 1950 60 New State Pension Age 6 April 1950- In the range 5 April 1951 60-61 6 April 1951- In the range 5 April 1952 61-62 6 April 1952- In the range 5 April 1953 62-63 6 April 1953- In the range 5 August 1953 63-64 6 August 1953 In the range 5 December 1953 64-65 10
Increase in State Pension Age to 66 From December 2018 the State Pension Age for both men and women will start to increase to reach age 66 in October 2020. These changes will affect: Women born on or after 6 April 1953 Men born on or after 6 December 1953 You can check your current State Pension Age by using the calculator on the website: www.direct.gov.uk and following the link Pension and Retirement Planning Alternatively, the State Pension Forecasting Team can be contacted by telephone on: 0845 3000 0168 Future increases in State Pension Age to 67 and 68 The current law already provides for the State Pension Age to increase to: 67 between 2034 and 2036 68 between 2044 and 2046 However, the government announced on 29 November 2011 that State Pension Age will now increase to 67 between 2026 and 2028. This change is not yet law and will require the approval of Parliament. This would mean that people born after 5 April 1961, but before 6 April 1969, will have a State Pension Age of 67. People born after 5 April 1960, but before 6 April 1961, would reach State Pension Age between age 66 and 67. 11
Free bus travel for Older or Disabled people Free bus travel is available to concessionary bus pass holders all day, every day when travelling around Staffordshire. In Staffordshire, concessionary bus passes were originally administered as eight separate schemes by each of the county s District and Borough councils. In April 2011 these schemes were consolidated into one which is now solely administered by the County Council. It s easy to apply. Wherever you live in Staffordshire just pop into your local library or larger mobile library and they will be able to help. You can also apply in a few other locations. These are listed on Staffordshire County Council s website along with other useful information that can be found at: www.staffordshire.gov.uk/transport/ publictransport/buspass/ Nationalbuspass.aspx The qualifying age for an Older Person s pass is aligned to State Pension age, which started to increase incrementally from April 2010 (see article on page 10). To apply you will need to provide proof of your identity and where you live. In addition: For an Older Person s pass you will also need proof of your age For a Disabled pass you will also need proof of your disability Please note - you will not be required to provide a photograph if you are applying in person. The National Bus Pass scheme is operated by all local authorities in England. If you live outside Staffordshire and are interested in finding out more please contact the local authority where you live. 12
You can help shape the next edition of incontact by:??? 2. Telling us what you think? 1. Sending us a photograph The new look newsletter shows a photograph on the front cover. We would like readers to send us one of their photographs for consideration and possible inclusion in future editions. The theme is the great outdoors, for example, pictures could be of countryside views or buildings of interest (preferably without people in the foreground). Attach your picture (no larger than 2MB) to an e-mail and send it to us using the contact details on page 16, telling us who you are and where the picture was taken. We invite you to send us your ideas, suggestions and preferences on future articles for the newsletter. For example, these could include articles on the following themes: Health Finance Humour Special Offers Competitions General Interest We will, of course, continue to provide up to date information on matters concerning the payment of your pension. We look forward to receiving any feedback you may have. Please use the contact details on page 16. 13
National Fraud Initiative Staffordshire County Council is required by Law to protect the public funds it administers. It may share information provided to it with other bodies responsible for auditing or administering public funds, in order to prevent and detect fraud. The Audit Commission appoints the auditor to audit the accounts of this authority. It is also responsible for carrying out data matching exercises. Data matching involves comparing computer records held by one body against other computer records held by the same or another body to see how far they match. This is usually personal information. Computerised data matching allows potentially fraudulent claims and payments to be identified. Where a match is found it indicates that there is an inconsistency which requires further investigation. No assumption can be made as to whether there is fraud, error or other explanation until an investigation is carried out. The Audit Commission currently requires us to participate in a data matching exercise to assist in the prevention and detection of fraud. We are required to provide particular sets of data to the Audit Commission for matching for each exercise, and these are set out in the Audit Commission s guidance, which can be found at: www.audit-commission.gov.uk/nfi The use of data by the Audit Commission in a data matching exercise is carried out with statutory authority under its powers in Part 24 of the Audit Commission Act 1998. It does not require the consent of the individuals concerned under the Data Protection Act 1998. Data matching by the Audit Commission is subject to a Code of Practice. This may be found at: www.audit-commission.gov.uk/nfi/ codeofdmp.asp For further information on the Audit Commission s legal powers and the reasons why it matches particular information, see www.audit-commission.gov.uk/nfi/ fptext.asp. For further information on data matching at this authority contact, Steven Parsons, Internal Audit (01785 276405). 14
Mortality Tracing In addition to the data matching carried out on our behalf by the Internal Audit Section, Pension Services also use an external company to carry out mortality tracing on a monthly basis. This means that they check whether the death of any of our pensioners has been registered, which helps us better manage the level of overpayment which can occur when one of our pensioners dies without leaving a next of kin, or where the next of kin is unaware that we need to be informed of the death. Pension Tracing Service If, prior to becoming a member of the LGPS, you think you may be entitled to receive a pension from another provider, but have lost their contact details, the Pension Tracing Service may be able to help by providing you with the former scheme s address. The Pension Tracing Service holds details of over 200,000 company pension and personal pension schemes. They can be contacted by writing to: The Pension Tracing Service The Pension Service Tyneview Park Whitley Road Newcastle upon Tyne NE 98 1BA Tel: 0845 600 2537 Website: www.direct.gov.uk The service is free of charge. You will need to provide as much information as you can about the scheme you are searching for. 15
Please remember You should inform Pension Services directly of any amendments we should make to your personal details, for example if you change your name, address or marital status. The details should be given in writing, quoting your Pay Reference Number and enclosing copies of any supporting documentation if appropriate (i.e. a copy of your marriage certificate if you have married or a copy of your decree absolute if you have divorced). You can contact Pension Services by writing to: Pension Services Wedgwood Building Tipping Street Stafford ST16 2DH or by phoning: 01785 278222 or by fax: 01785 276489 or by e-mailing: pensions.enquiries@staffordshire.gov.uk we also have a website at: www.staffspf.org.uk If you prefer to discuss your pension in person, you are welcome to come and see us. It is advisable to make an appointment. 63828/12 16